PARIS -- Renault said it was launching talks with unions to reorganize plants in France as it cuts about 14,600 jobs worldwide and lowers production capacity by almost a fifth to survive the downturn that has rocked the global auto industry.
In a news release on Friday, Renault said it will reduce its global production capacity to 3.3. million vehicles in 2024 from 4 million in 2019. Planned capacity increases in Morocco and Romania will be suspended.
"We thought too big in terms of sales," CEO Clotilde Delbos told a conference call, adding that the automaker was "coming back to its bases" after investing and spending too much in recent years.
The automaker held off on decisions about the future of sites in France amid political furor and union opposition, saying that talks will begin on various scenarios including phasing out car assembly at Flins, where it produces the Renault Zoe and Nissan Micra, and Dieppe, which builds the Alpine A110 sports car.
Some plants such as in Flins, near Paris, could center on recycling activities instead of building cars, Renault said.
The Douai and Maubeuge plants in northern France would become "centers of excellence" for electric vehicles and light commercial vehicles, respectively, the automaker said.
Six sites in all, including component factories, will be under review.
Renault said it would reduce costs by cutting the number of subcontractors in areas such as engineering, reducing the number of components it uses and shrinking gearbox manufacturing worldwide.